An example of moral hazard is
a. workers working diligently even though the boss is not looking
b. health care insured dieting and exercising
c. drivers of safer cars turning their phones off before driving
d. borrowers investing their loan proceeds differently than the bank requires
d
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How can managers of natural monopolies exaggerate their costs?
What will be an ideal response?
What is an economic market?
What will be an ideal response?
If there are only two goods and these are consumed in fixed proportions, the price elasticities of demand for these two goods will sum to:
a. 0.0. b. -0.5. c. -1.0. d. a number between 0 and -1.
People choose to hold a smaller quantity of money if
a. the interest rate increases, which causes the opportunity cost of holding money to increase. b. the interest rate increases, which causes the opportunity cost of holding money to decrease. c. the interest rate decreases, which causes the opportunity cost of holding money to increase. d. the interest rate decreases, which causes the opportunity cost of holding money to decrease.